Tratamiento Contable Del Activo Biológico; Un Estudio De Caso En La Paloma, Paraguay

Abstract

A biological asset refers to a type of tangible asset that includes live plants and animals, as well as agricultural products in various stages of development. The objective of the work was to analyze the accounting treatment of biological assets in La Paloma-Paraguay. The research used a qualitative approach methodology, descriptive case study; the population consisted of three accountants with experience of more than 5 years. Fieldwork was carried out and an interview questionnaire with open-ended questions was applied. The main results show that, accounting professionals have a reliance on the Regulations because Law No. 6380/2019 and the International Accounting Standards (IAS), specifically IAS 41 - Agriculture, govern them for the accounting treatment of biological assets. Consequently, accountants take into account specific biological factors, such as age, stage of development, health and productivity of the livestock or crop, when applying accounting practices. On the other hand, accountants face challenges such as obtaining accurate and timely information from clients, reconciling data between different sources, and accurately determining production or acquisition costs. The lack of internal control in agribusinesses and the need to perform periodic valuations on crops and livestock with short life cycles are also identified as major challenges.